An IFRS impact assessment, or an assessment of any newly effective standard, quantifies the change before it hits the accounts. CLA Emirates models the effect on your financial statements, ratios, covenants and systems, and sets out what has to change to comply.
IFRS impact assessment
An IFRS impact assessment is a structured analysis of how a new or amended standard will alter a company's reported results, balance sheet, disclosures, systems and processes.
It is a quantified exercise, not a summary of the standard. The output is a set of restated figures showing the position under the current and the new treatment, alongside the practical work required in the ledger, the reporting pack and the underlying source data.
IFRS gap analysis
Run an IFRS gap analysis UAE reporting requires as soon as a standard is issued with a future effective date, and always before the comparative period begins.
Timing matters because most standards require restated comparatives. A company that starts in the year of adoption has already lost the ability to capture data prospectively and ends up reconstructing a full prior year under time pressure during the audit.
Scope of IFRS impact assessment
It covers quantification of the financial effect, the accounting policy change, transition options, disclosure requirements, system and data changes, and the knock-on effect on covenants, tax and management reporting.
What the assessment delivers
- Quantified effect on profit, assets, liabilities and equity
- Restated comparative figures for the transition period
- Transition option analysis, full or modified retrospective
- Revised accounting policy wording for the financial statements
- Disclosure checklist for the year of adoption
- System, data and process changes required
- Covenant, tax and management reporting implications
